Prices for seaborne iron ore concentrate and pellets continued to rise in the week ended Friday November 20 amid an increase of demand among Chinese steelmakers due to costlier coking coal, sources told Fastmarkets.
Fastmarkets iron ore indices
66% Fe concentrate, cfr Qingdao: $137.39 per tonne, up $4.89 per tonne.
65% Fe blast furnace pellet, cfr Qingdao: $157.96 per tonne, up $0.24 per tonne
Key drivers
A trader in Singapore said that demand for concentrate and pellets was likely being spurred by anticipation of stricter steelmaking restrictions in China with the onset of winter. This is evident from the drawdown of port stock for both iron ore products, he said.
A buyer source in southern China believes that the high price of coke is creating more demand for low-silica iron ore. This has resulted in such products being traded at a premium.
For instance, while low-silica Tacora concentrate from Canada was recently traded at a premium, ArcelorMittal concentrate is expected to be traded at a discount of around...